Discounting

How to communicate with your potential renters - how to turn site visitors into enquiries, and enquiries into bookings.
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tansy
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Discounting

Post by tansy »

What are your thoughts re discounts...I have just had an enquiry in from the States for a month in June in our Utah Beach House.

It would be a 'full' house 8 adults 2 children...yet they want a discount - I've said no sorry - June is busy round the invasion beaches for obvious reasons, but I'm prepared to keep the shoulder price.

What do others do re longer bookings? - to me to discounting seems a false economy as it is lost revenue - we still have the same outgoings and cleaning costs as we clean & change linen every week regardless how long folk are in for.
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Sue Dyer
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Post by Sue Dyer »

What kind of knockdown are they looking at? I've slightly discounted 2 weeks before, rounded the odd £10 off to make a slight gesture and know I had a definite booking, but as you say, you still have the same outgoings....

If you know you can certainly fill the weeks I'd stick with your price - I bet they'll not try and negotiate a cheaper rate in the cafe's (or maybe not......!)
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paolo
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Post by paolo »

Tansy,

If it's for a period I know I will fill anyway, I always say no. But I say it nicely. I point out I have 4 mouths to feed and it wouldn't be fair on them to reduce my income. Another good way to say no is to blame your spouse - say you'd like to but he/she just wouldn't allow you to.

Fixed costs don't change for a longer rental so you would basically be reaching into your pocket and giving them money.

That's assuming there is a weekly clean and you pay the cleaner (or yourself) the same as for a changeover. If you don't offer a weekly clean, then there is the opportunity there for you to create some goodwill by giving them some of your saving.

I think a lot of people who ask for a discount are just doing it because it seems the right thing to do, and are happy enough to be told 'no'.

On a related issue - do you find that those who do come on a discounted stay tend to also be the ones who leave breakages and mess?
Paolo
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Linda Freese
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Post by Linda Freese »

I only offer discounts for stays of over 4 weeks and never in the high season. I think it shows goodwill and people never abuse it so no, Paolo, in my experience the breakage percentage is not higher! I hope that I don´t live to regret these words!
DivineMrsM
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Post by DivineMrsM »

I had an enquiry from the US recently wanting to know the availability (obviously didn't look at my calendar :lol: ) for August next year and if there would be a two week or early booking discount :shock: .

I didn't hear a squeak back when I had to tell her that we were already fully booked... :lol: .

I'm thinking of introducing a discount system for our return customers. Nothing huge, just a small percentage. As we are a big house and they usually are bringing other friends then it can be a good bit of word of mouth.

We've got our first return booking in for next summer for someone's 40th. They first stayed with us on our per person tariff in June this year which meant they got a real bargain. Now they are coming back at peak season and bringing a whole heap of trendy Brighton friends with them! I'm sure we'll get future bookings this way so a small discount was very worthwhile.
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paolo
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Post by paolo »

I'm thinking of introducing a discount system for our return customers
I think this is a good idea. I offer last year's prices, if they've gone up. And I give them preferential treatment, like holding a period for them without a deposit until they are sure. And they get champagne instead of wine as a welcome gift (that's poo to Tansy :D ). I'm also more flexible about their arrival time and ask my cleaner to finish their house first.
Paolo
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Christine Kenyon
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Post by Christine Kenyon »

I've often wondered about offering a discount to return visitors or to those who book a long time in advance (eg, more than a year). As yet, I haven't done it (must be due to the Yorkshire blood in me!) ... and we still get a good proportion of repeat bookings and we're well booked up. I tend to recognise their good custom by a more personal "welcome gift" as we tend to know them a bit better by the time they return.

Christine
Roberta
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Discounts

Post by Roberta »

I recently had a request for a discount of more than 20% for a holiday weekend. I responded that I offer a small discount to repeat clients who have proven themselves to be responsible renters, and have rented at least 10 days from us previously. The discount we offer them is 10%.

Somehow, I don't think bargain hunters will respect my property. I'd rather have it sit vacant than have someone I don't trust renting it.
Roberta
Paul Carmel
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Post by Paul Carmel »

I have to say I hate giving discounts, it makes me feel like our hard work is not quite up to scratch and frankly it's a bit insulting. But at the end of the day a booking is a booking (within reason). But if your boss said "I really like your work but would you work the same hours for less money" I think I know what your answer would be.
Cheers
PC
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Hanorah
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Post by Hanorah »

I think the culture of expecting a discount is just par of the course now. Most travel programmes have educated people that there are ways to get discounts on flights, hotels and accomodation. This of course leads people to expect it to extend to private lets and just about anything thing else. The old saying if you don't ask you don't get is very apt. I certainly look around for a bargain no matter what I am buying.

I gave large discounts last year as it was our first season and I wanted some feedback. I must say all of our guests were fantastic and 4 have rebooked for this year. I also offer repeating guests a 20% discount as I think it pays to look after your customers and you also know exactly what you are going to get.

However I am not completely mad as I have increased my rates by 25% more than my bottom line to give me the advantage to offer discounts if necessary but not to lose out financially. I want to get my published rates, as believe this is what the accomodation is worth and I also offer a lot of free services that take up my personal time. My main priority though is to bring the money in to cover the purchase cost of the property so if discounting works I am happy to do it (even if the travel planning etc I do is for nothing).

People love a bargain and love to haggle I see it all as part of the sales game. Mention the word sale or special offer and people will clamour.

You can normally work out the character of a person through communication and if they seem dodgy steer clear.

However I think it would be mistake to figure if they are after a discount they may be undesirable as if you take at the feedback page on my website these were the type of people looking for a bargain last year.

This is of course a personal thing for everyone but if you get any guests asking for discounts and are not interested, send them to me I would be happy to haggle.

Take Care (Del Girl)
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Paul Carmel
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Post by Paul Carmel »

We have stood our ground on this, and have to say 9 times out of 10 it has worked out in our favour.
Cheers
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vrooje
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Post by vrooje »

From a vacationer's perspective I will almost always ask if there are discounts available -- because if I don't ask, I know they won't be offered!

But if they aren't offered after inquiring, I let it go and evaluate the place based on whether I'm willing to pay full price or not.

So from an owner's perspective, if someone persists about a discount after I've told them we're not willing/able, my dodgy-sensors go off!

We have given discounts for weeks on the edge of the season and multiple-week bookings, and we've never had a serious problem.

Cheers!
Brooke
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paolo
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Re: Discounts

Post by paolo »

Welcome to the forum, Roberta! Image
Roberta wrote:Somehow, I don't think bargain hunters will respect my property. I'd rather have it sit vacant than have someone I don't trust renting it.
That's my feeling too. So I never bend on price, except as you say, in giving a break to people who rented before.

Where you stand on discounting depends on where you are too. If you are somewhere incredibly competitive like Orlando I guess you are obliged to negotiate if you want to get the booking.
Paolo
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Alan Knighting
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Post by Alan Knighting »

Paolo,

My attitude towards discounts is basically the same as yours - I automatically offer discounts to guests who have rented here before. In addition, I negotiate terms and rents for out-of-season lettings particularly for those which are longer than the usual one or two weeks. I am fortunate in that each of my properties has its own separate electricy and water supplies and its own firewood store.

In reality the question of discounts is hardly ever raised by prospective guests. Perhaps that is down to the nature and attitudes of the sorts of people who holiday in particular locations. I am a firm believer in the saying "shy bairns get nowt" but for whatever reason I don't attract the "owt for nowt" brigade.

By way of example, I have just dealt with a booking for the whole of the month of May 2006. For me that straddles the Low and the Mid seasons. On the basis of it being an advance booking and longer than the norm I volunteered a rent of x4 the weekly Low season. The response I got was a protestation that they were not seeking a discount but were very grateful for, and accepted, the offer.

The same basic attitudes are reflected in that my guests treat my properties with respect while they are here and normally leave them in immaculate condition when they depart. You may say it is luck; I don't think so. I think it is much more down to location, the properties, how the properties are presented and how guests are treated while they are here. Maybe that's why I get such a high percentage of returnees and recommendations.

Alan
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paolo
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Post by paolo »

The same basic attitudes are reflected in that my guests treat my properties with respect while they are here and normally leave them in immaculate condition when they depart. You may say it is luck; I don't think so. I think it is much more down to location, the properties, how the properties are presented and how guests are treated while they are here. Maybe that's why I get such a high percentage of returnees and recommendations.
I think that's spot on, Alan.
"shy bairns get nowt"
What's that in English? :D
Paolo
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